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This pattern shows the stock that has dropped below the lowest ‘O’ in the last ‘n’ columns. N is the parameter that you can define. If you define it as 5 and scan the stocks for it, the stock falling below the lowest O of the last 5 columns in the current column of O will appear in the output window.
Lowest O of last 5 columns would be the lowest price level of last 5 columns.
It is a major bearish breakout pattern that shows that the stock is below its last several swing moves. It is similar to a 10-day or 20-day bearish candle breakout in OHLC charts, however, the number of sessions in P&F is dynamic. It depends on the price pattern and market structure. Hence, we get the advantage of looking at multi-swing price breakout where we let price decide the time period.
This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.